Caneer Corporation produces and sells a single product.Data concerning that product appear below:
The unit sales to attain the company's monthly target profit of $44,000 is closest to:

Question

Caneer Corporation produces and sells a single product.Data concerning that product appear below:
 The unit sales to attain the company's monthly target profit of $44,000 is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $240.00 per unit - $81.60 per unit
= $158.40 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM
= ($44,000 + $997,920) ÷ $158.40 per unit
= $1,041,920 ÷ $158.40 per unit
= 6,578 units

Caneer Corporation Produces and Sells a Single Product